Friday, 7 May 2010

Slovenia - What are the future prospects for the pharmaceutical industry?

The Slovenian pharmaceutical market is set to grow as the economy improves.

In per capita terms, Slovenia is the richest country in Central & Eastern Europe, with spending per head at least double that found elsewhere in the former Communist countries of the region. Although the economy contracted in 2009, for the first time in 16 years, there are signs that the recession has peaked and the economy is set to grow over the next few years.

The market is predicted to expand at a moderate CAGR over the next five years, although this may be tempered by slow economic growth in 2010. Generics account for a high proportion of the pharmaceutical market in volume terms. Domestic production is strong, dominated by the leading generic companies, Krka and Lek. Both companies play a major role in Eastern European markets and are also seeking to expand their presence in the USA. Multinationals tend not to have manufacturing plants in Slovenia, given the country's small size and proximity to the major Western European manufacturing centres.